The reduction in workforce is largely focused in areas primarily dedicated to the planned commercialization of Veronate, the company's most advanced product candidate.
The company anticipates recording a charge of $1.2 million in the second quarter of 2006 related to the cost of one-time termination benefits but expects to reduce annual expenses associated with salaries and benefits by approximately $3.5 million.
“We have taken immediate steps to reduce and control our expenses while ensuring that we have sufficient human and capital resources in place to appropriately support our current corporate objectives,” stated Dr William Johnston, president and CEO of Inhibitex. “We no longer see a need to establish a commercial infrastructure in the near-term, therefore we are adjusting our cost structure to appropriately reflect the stages of our clinical and preclinical development programs.”